Study on the Effect of Supplier Network Insight of Manufacturers on Supplier Integration

Abstract

Abstract:

In the fierce market competition, supplier integration becomes an inevitable strategic choice of manufacturers to gain sustainable competitive advantages by acquiring and using external value resources effectively. According to cognitive behavioral theory, the scientific nature of strategic decision is subject to manufacturers' cognition of the supplier network, namely supplier network insight, which may greatly influence the effectiveness and efficiency of supplier integration strategy. Nevertheless, few existing researches have examined whether and how supplier network insight of manufacturers contributes to their supplier integration. To better reveal the influence mechanism of supplier network insight on supplier integration, this research, considering from network cognitive perspective, clearly defines the concept of supplier network insight which consists of "network scale", "network positioning", "attentive focus", "interaction and perception" and "environmental insight". The relationship quality is also introduced as the mediator, which is constructed as a mediation model. In order to examine the mediation conceptual model and its associated mechanisms, an empirical research is conducted by using 332 valid sample data collected from Chinese manufacturers in the method of structural equation model way. The research results show that every aspect of supplier network insight has a significant positive impact on supplier integration. Additionally, except "network scale" and "environment insight", the level of supplier network insight in "network positioning", "focus of attention" and "interaction and perception" aspects will indirectly affect supplier integration through the relationship quality between manufacturer and suppliers. This paper shifts the focus of attention on supplier integration to network cognition domain, and emphasizes that it's important for supplier management practices of manufacturers to understand their supplier network deeply and systematically. And it theoretically reveals the influence mechanism of manufacturers' supplier network insight on the supplier integration, and further broadens the research scope of supplier integration. In practice, it could guide manufacturers effectively to insight into the supplier network systematically, explore and acquire external value resources, and help manufacturers to carry out supplier integration efficiently. Thus the research results have certain theoretical and practical significance.

Key words: supplier integration, network insight, relationship quality, supplier network, value resources

Li Suicheng, Li Yuzhong, Li Na. Study on the Effect of Supplier Network Insight of Manufacturers on Supplier Integration[J]. , 2019, 31(11): 224-239.

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